12-08-2014 Council Meeting Minutes

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COUNCIL MINUTES December 8, 2014 APPROVED 46 47 Resolution No. 14-146, Approving Transfers for 48 Partial Installment Payment on Interfund Loan for 49 Recreation Complex Land Approved 50 51 FINANCE DEPARTMENT REPORT 52 53 A) Public Hearing — 2014/15 Property Tax Levy and 2015 Budget — Finance Director Rolek 54 gave a PowerPoint presentation outlining the 2015 proposed budget as follows: 55 • tax levy, what is included and what was reduced from the prelimninary budget; 56 • a historic view of the city's tax levies; 57 • property values; the tax base has increased; 58 • the proposed tax rate, and a view of past rates; 59 • distribution of levied funds (schools, county, etc); 60 • tax computation process (value minus market value exclusion times tax rate) 61 • how the city's taxes rank in Anoka County; 62 • proposed 2015 budget process (calendar, steps to setting the budget); 63 • what's included in the city budget; 64 • the sales tax exemption approved by the Legislature has saved the city money this year; 65 • proposed revenue for 2015 (including a transfer from the Closed Bond Fund); 66 • proposed expenditures for 2015; 67 • the water and sewer enterprise budgets 68 69 Council Member Roeser noted that the city council has reduced the city's budget for the past six years 70 but now the city is growing again and it is important to plan for that growth and the future. He also 71 noted that the city doesn't control all of its costs such as payments to the Metropolitan Council, union 72 wages, pensions, road work that is needed, etc. He also noted that the tax bill that property owners 73 received earlier in the year with the preliminary tax amount has been lowered by the council. The 74 council did choose to utilize some reserve funds; those are true reserves that were set aside but not used 75 and can now be drawn down to a proper level to avoid being eaten up by inflation. The city will 76 maintain a fifty percent reserve. He noted a charter amendment previously forwarded to the council 77 that ultimately was not on the ballot but that would have caused the city to collect more in taxation than 78 is proposed. 79 80 Council Member Kusterman noted that this will be his first budget consideration as a city council 81 member. One of the reasons he ran for office was to help build trust in government. He believes the 82 council's job is to ensure that government functions well, providing needed services efficiently and 83 effectively and this budget does so. 84 85 Council Member Rafferty offered thanks to staff for their work on the budget. It's been a joint effort. 86 87 Mayor Reinert added that he came to the council with a "healthy distrust" of government. He can 88 assure the citizens that this council gets involved in the work of budget planning and drills down as 89 much as necessary to a good product. He is comfortable that the presented budget has been worked 90 down correctly. 2